Please explain how a call option value changes when interest rates increase with all else remaining...
Please explain how a call option value changes when interest rates increase with all else remaining the same.
Homework Answers
The value of q call options is directly related to the movement in the interest rates so it can be said that when the interest rate rises, the value of call options rises and when the interest rate falls,the value of call options falls as rising interest rate is considered a symbol of growing demand and inflation.
So movement of call options are directly related to movement in interest rates
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Please explain how a call option value changes when interest
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